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9 Stocks Compounding Income with Higher Dividends
Posted by: Dividends4Life (IP Logged)
Date: May 14, 2012 01:25PM

When evaluating a company as a potential income investment I look at its calculated fair value, ability to generate cash, debt position and the net present value of its dividend stream compared to alternative “safe” investments. The advantages dividend stocks have over "safe" investments are potential capital appreciation and dividend growth. Not only are your earnings compounding, but the rate of earnings is growing.

Below are several companies compounding their shareholders income with increased cash dividends:

Newell Rubbermaid Inc. (NWL) designs, manufactures and markets consumer and commercial products. May 10, the company increased its quarterly dividend 25% to $0.10 per share. The dividend is payable June 15, 2012, to common stockholders of record at the close of business on May 31, 2012. The yield based on the new payout is 2.2%.

Costco Wholesale Corporation (COST) operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities. May 9, the company increased its quarterly 14.6% dividend to $0.275 per share. The quarterly dividend is payable June 8, 2012, to shareholders of record at the close of business on May 25, 2012. The yield based on the new payout is 1.3%.

Quaker Chemical Corporation (KWR) develops, produces, and markets various formulated chemical specialty products for heavy industrial and manufacturing applications worldwide. May 9, the company increased its quarterly dividend 2.1% to $0.245 per share. The dividend is payable on July 31, 2012, to shareholders of record at the close of business on July 17, The yield based on the new payout is 2.1%.

CSX Corporation (CSX) provides rail-based transportation services, providing traditional rail service and the transport of intermodal containers and trailers. May 9, the company increased its quarterly dividend 7% increase to $0.14 per share. The dividend is payable on June 15, 2012 to shareholders of record at the close of business on May 31, 2012. The yield based on the new payout is 2.2%.

LyondellBasell Industries N.V. (LYB) manufacturers and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for the production of polymers. May 9th the company increased its quarterly dividend 60% to $0.40 per share. The dividend is payable on June 11, 2012 to shareholders of record as of May 21, 2012. The yield based on the new payout is 4.0%.

Hercules Technology Growth Capital Inc. (HTGC) is a private equity, venture capital, and venture debt firm specializing in providing debt and equity to privately held venture capital and private equity backed companies and select publicly-traded companies. May 8, the firm increased its quarterly dividend 4% to $0.24 per share, an increase of 4.0%. The dividend is payable on May 25, 2012, to shareholders of record as of May 18, 2012. The yield based on the new payout is 8.4%.

Mine Safety Appliances Company (MSA) engages in the development, manufacture, and supply of products that protect people's health and safety in the fire service, homeland security, oil and gas, construction, and other industries. May 8, the company increased its quarterly dividend 8% to $0.28 per share. The dividend is payable June 10, 2012 to shareholders of record on May 21, 2012. The yield based on the new payout is 2.7%.

NV Energy Inc. (NVE) engages in the generation, transmission, distribution, and sale of electric energy in Nevada. May 8, the company increased its quarterly dividend 31% to $0.17 per share. The dividend is payable June 20, 2012 to shareholders of record on June 5, 2012. The yield based on the new payout is 4.0%.

Intel Corporation (INTC) designs, manufactures, and sells integrated digital technology platforms primarily in the Asia-Pacific, the Americas, Europe and Japan. May 7, the company increased its quarterly dividend 7% to $0.225 cents per share. Today's announcement is the third dividend increase in the past 18 months. Intel's dividend has increased every year over the past decade. The yield based on the new payout is 3.2%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: Long INTC in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.

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Stocks Discussed: INTC, COST, CSX, KWR, NWL, MSA, LYB, HTGC, NVE,
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